HIV AIDS -Impacts and Mitigation

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HIV/AIDS

... And Its Impact on Economies & Populations

AIDS is caused by infection with a virus called human immunodeficiency virus (HIV). The most common ways that people become infected with HIV are:

  • having sexual intercourse with an infected partner.
  • Injecting drugs using a needle or syringe that has been used by someone who is infected.

The HIV/AIDS pandemic is now one of the most rapidly spreading diseases in the world. HIV is the established cause of AIDS although the origin of the virus itself remains unknown in spite of several theories (one bizarre theory is that it’s an evolved form of SIV from chimpanzees).

Today, about 40 million people in the world are affected by it (majority in Africa) while 30 million people have already died because of AIDS. Although many scientific research facilities in various countries are constantly studying it, no cure has yet been found.

This report aims to investigate the impact of HIV/AIDS & the preventive measures that have been taken to mitigate the effects by three countries – South Africa, India & Canada, as each is in a different continent & has a different HIV/AIDS prevalence rate.

The following table shows various statistics that would help in studying the impacts of HIV/AIDS on the country & its people: -

1] Impact on Economic Growth

South Africa

South Africa has a HIV/AIDS prevalence rate of 21.5%, one of the highest in the world. As compared with a non-HIV/AIDS scenario, the average GDP growth rate has fallen by 0.5% for the next 15 years, while GDP per capita will be 10% lower in 2010.

The AIDS pandemic increases mortality & morbidity; the high mortality impacts the labour causing a loss of skills in key sectors of the labour market. For example, the 60% of the mining workforce aged 30-45 years is predicted to fall to 10% in 15 years. The high morbidity causes an increase in health expenditures, reducing families’ savings over time. As a result, children’s education, health & nutrition suffer & this could have long term impacts on economic growth & development.

Hence, public spending is diverted to health expenditures instead of investments & consumption pressurising the government to increase their spending to deal with the rising prevalence of AIDS, thereby creating the potential for fiscal crises.

India

India has a prevalence rate of 747/100,000 = 0.7%, a rate which has a potential for crisis & which could have a severe impact on the nation's economy over the next decade unless the government takes action to control its spread; if not, the AIDS pandemic could cost India 1% of its economy, or $237billion. There are 5.7million people infected with HIV/AIDS in India today, the largest number in the world; which is estimated to quadruple by 2025. With this kind of an exponential growth, HIV/AIDS could have a toll similar to that of African countries on the Indian economy.         

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Canada

As Canada has a HIV prevalence rate of just 0.2%, it does have to worry much about AIDS. The pandemic is only present in Canada at a very small scale & hence has no significant impact on labour supply or its growth rate. People are healthy & do not have to take frequent leaves from jobs to care for relatives infected with AIDS or lose their job for being tested positive for HIV. Public spending is focused on diseases like cancer, Alzheimer’s, heart-related diseases, etc.


2] Impact on Healthcare

South Africa

The HIV/AIDS ...

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